T-Notes Reopen Higher On Covid Vaccine News

AstraZeneca statement pushed T-Notes higher at the Tokyo re-open, but the initial impetus has been fading since. The contract sits +0-04+ at 139-17 (just above Tuesday's peak) after topping out at 139-20 early into the Asia-Pac session. E-minis re-opened on the back foot, but have clawed back some of the losses and operate just shy of neutral levels.

• Cash Tsy curve has bull flattened in early trade, yields last trade 0.6-2.3bp lower. Eurodollar futures sit unch. to +0.5 tick through the reds.
• Moncef Slaoui, the chief adviser for the Warp Speed programme, said that the UK's trial Data Safety Monitoring Board in coordination with the U.S. DSMB has paused AstraZeneca's phase 3 vaccine trial.
• Initial risk-off impetus may have been amplified by concerns over the latest developments in Sino-U.S. trade tensions, after the White House banned imports from some Xinjiang firms amid allegations of forced labour use in the province. Any firm response from China will be eyed in Asia hours. Global Times Editor-in-Chief tweeted that Beijing might sanction U.S. officials visiting Taiwan and any companies with ties to them.
• On the fiscal front, Senate Republicans proposed a scaled-down coronavirus relief bill, which focuses only on the key issues, and are planning to put it to the vote on Thursday. Democratic leaders Schumer and Pelosi said that the bill is "headed nowhere"
• U.S. calendar is rather light today, includes JOLTS job openings.